Wednesday, January 12, 2000
FOR IMMEDIATE RELEASE

Governor's Budget Fails to Address Flawed Formula

Governor Pataki introduced his 2000-2001 Executive Budget today, proposing a $355 million school aid increase. While this increase is a step in the right direction, it fails to address the central problem of education funding: the fundamentally-flawed finance system.

"Although the Governor proposed an increase in the overall number of education dollars, the funds would not be distributed in a rational or equitable way that would address the educational needs of New York's students," said Michael Rebell, Executive Director and Trial Counsel for Campaign for Fiscal Equity, Inc. (CFE), the non-profit coalition leading the historic school finance suit against the State in Manhattan Supreme Court.

"Governor Pataki's proposed increase is less than 25% of the amount recommended by the Board of Regents as the necessary state aid increase to implement the new Learning Standards. Unless more money is allocated for implementing the new standards, students in high-need districts will not be prepared to pass the Regents exams and graduate," he said.

"The Budget fails to take into account student wealth and student need. Rather than targeting more funds for high-need districts, it leaves the current 'formula' intact, which is nothing more than a political manipulation of state funds," Mr. Rebell observed.

On its face, there are several defects in the Governor's budget proposal:

• Operating Aid is Capped: Ignores the individual needs of districts by granting all districts an operating aid increase of between 1.25% and 2.25%, not accounting for the differences in need between districts;

• Tax Cuts Benefit the Wealthy: "Protecting and Expanding" School Tax Relief (STAR) benefits only the property-wealthy districts;

• Cuts Aid to High-Need Districts: Neglects the needs of high-need districts by cutting Extraordinary Needs Aid (ENA) by $13 million statewide; and

• Pays Lip Service to Teachers: Addresses the importance of a strong teaching force, yet cuts categorical grants for teachers (such as teacher support and teacher centers) in New York City by $53 million.

In the court system since 1993, Campaign For Fiscal Equity v. State of New York charges that thousands of students in New York City and other high-need districts are being denied the opportunity to a sound, basic education because they attend overcrowded schools with inadequate supplies and a lack of experienced, certified teachers.